Chart of the day

AMZN is testing the strong upside resistance of 131.50. A break above this level could lead to an extension higher. After this resistance, we have 50% of the Fibonacci retracement (November 2021-Januar 2023) 135 level.

A confirmed break below 123 after the rejection could lead to a complete downside reversal and a rising wedge break. A break above 131.5 key upside resistance followed by a break above 135 is required for the upside continuation and an extension higher. If we do not see a break below 123 now we can see another test of 131.50 near-term and then we will know more about the prevailing direction of the market.

Long trades, you should open only upon a break above 131.50. For short trade entries, you can enter here if you will take more risk or if you are conservative wait upon a break below 123 short trade or buy the put options. Be patient and careful both intraday and long-term as we will see a directional break soon